Whereas, upon the same quantity of goods carried by water, there is to be charged only the maintenance of six or eight men, and the wear and tear of a ship of two hundred tons burden, together with the value of the superior risk, or the difference of the insurance between land and water-carriage.
there is an oversimplification in A. Smith’s reasoning here. It assumes fair trading in the market. The buyer may however be charged a “convenience” premium.
